WSJ:OIL FUTURES: Crude Up On Euro-zone Hopes, Weaker Dollar
-- Oil futures rise as investors look to secure bargains after sharp losses
-- Ongoing debates over possible strategic oil stock release weigh
-- Euro-zone meeting, talks between U.S. and Saudi Arabia eyed
By Konstantin Rozhnov
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Crude-oil futures were higher Friday on investors' renewed buying appetite after sharp losses earlier in the week and amid a weaker dollar and hopes a euro-zone finance ministers meeting will enhance the region's resilience to the sovereign-debt crisis.
At 1053 GMT, the front-month May Brent contract on London's ICE futures exchange was 79 cents, or 0.7%, lower at $123.18 a barrel. The front-month May contract on the New York Mercantile Exchange was trading up 47 cents, or 0.5%, at $103.25 a barrel.
Euro-zone finance ministers, meeting in Copenhagen Friday and Saturday, are expected to discuss an increase in the region's bailout fund. Oil market participants hope that if the euro zone sorts out its sovereign-debt problem, it will support demand for oil.
But ongoing debates over a possible strategic oil stock release continues to weigh on crude prices.
The release increasingly appears to be a real option, Commerzbank said in a note.
"The reason for the stock release is price management not supply management and for that reason we think that there is a risk for the announcement of the stock release to be made before April 12," as the talks between Iran and the West will start April 14, said Olivier Jakob, managing director of Swiss consultancy Petromatrix.
Investors are also focused on U.S. Secretary of State Hillary Clinton's meeting with representatives of Saudi Arabia this weekend, analysts say.
"One key question on the agenda will be whether Saudi Arabia intends to maintain its oil production if reserves are released, rather than reducing it by a corresponding amount," Commerzbank said.
Later Friday, market participants will pay attention to U.S. personal income and spending numbers for February for further clues on the state of the U.S. economy, the world's largest oil consumer.
At 1053 GMT, the ICE's gasoil contract for April delivery was down $1.50, or 0.2%, at $1,016.25 a metric ton, while Nymex gasoline for April delivery was 234 points, or 0.7%, higher at $3.4240 a gallon.
-By Konstantin Rozhnov, Dow Jones Newswires; +44 207 842 9956; konstantin.rozhnov@dowjones.com
